Harte Hanks Reports Fourth Quarter and Fiscal 2023 Full-Year Results
- Project Elevate aims for strategic growth with cost reductions and cash reserves optimization.
- New sales leadership and cost optimization initiatives are expected to drive organic growth.
- Despite revenue decline in Q4 2023, the company is optimistic about future growth and profitability.
- The company ended 2023 with $18 million in cash and no debt, emphasizing financial stability.
- The CEO highlighted the importance of the comprehensive review leading to modernizing the go-to-market strategy.
- Revenue declined in Q4 2023 by 9.7% compared to the same period in 2022.
- Operating loss was $2.3 million in Q4 2023 compared to operating income of $3.4 million in Q4 2022.
- Net loss for Q4 2023 was $2.0 million, including $5.7 million in restructuring charges.
- Full-year revenues for 2023 decreased by 7.2% compared to 2022.
- Net loss for 2023 was $1.6 million, a decrease from net income of $36.8 million in 2022.
Insights
The announcement by Harte Hanks regarding the 'Project Elevate' initiative is poised to significantly restructure the company's sales and marketing strategy. The projected $6 million cost reduction in 2024 and $16 million over two years could potentially improve the company's operating margins. This is a strategic move to enhance efficiency and reduce overhead costs, which is often well-received by investors as it can lead to improved profitability and shareholder value in the long-term.
Moreover, the company's position with $18 million in cash and no debt provides a strong balance sheet that can support the costs associated with the transformation without compromising liquidity. This fiscal prudence is essential for executing long-term growth strategies and could make the company more resilient to market fluctuations. The focus on organic growth through revamping the go-to-market strategy and investing in lead generation is also a positive signal for future revenue streams.
From a financial perspective, Harte Hanks' fourth quarter results show a decline in revenue by 9.7% compared to the previous year, which may raise concerns among investors regarding the company's current market performance. However, the operating loss and net loss figures include substantial restructuring charges related to 'Project Elevate'. When these are excluded, the underlying performance suggests a potential improvement in profitability.
The extension of the $25 million line of credit until mid-2025 enhances the company's financial flexibility, allowing it to pursue growth initiatives without immediate pressure to repay debts. The strategic decision to terminate Pension Plan 1 aligns with the broader objective to optimize the cost structure, which may be viewed positively in terms of future cost savings.
Strategically, Harte Hanks is embracing a transformation that focuses on organic growth and cost optimization. The addition of experienced sales leadership and the development of new sales divisions indicate a proactive approach to expanding market reach and enhancing customer relationships. The revised incentive structure for the sales team and the alignment between business units are critical for driving consistent pipeline growth and sales performance.
The company's efforts to grow through strategic partnerships and events, as well as targeting the SMB and mid-market segments, demonstrate a clear strategy to tap into new revenue opportunities. This approach, if executed effectively, can lead to sustained growth and market share expansion. Stakeholders should monitor the implementation of these strategies and their impact on sales and profitability in the coming quarters.
- Project "Elevate" Sales and Marketing Transformation Revamped for Strategic Growth;
- Anticipate approximately
$6 Million in 2024 Cost Reductions,$16 Million over Two Years; - Ends Year with
$18 Million of Cash and No Debt
CHELMSFORD, MA / ACCESSWIRE / March 14, 2024 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company focused on bringing companies closer to customers for over 100 years, today announced financial results for the fourth quarter and year ended December 31, 2023.
Kirk Davis, Chief Executive Officer, said: " Project Elevate , the outcome of a comprehensive review of our business in collaboration with newly hired executive sales leadership and respected consultants, is designed to modernize our go-to-market strategy, invest in lead generation, and enable organic growth. We have added two experienced sales leaders in Kelly Waller, our new SVP of sales and marketing, and Ron Lee, our new SVP of sales services. These two accomplished sales executives are the ideal people to drive the key components of our organic growth initiatives forward. More recently, we added additional experienced personnel to lead international sales expansion, grow our newly created partner network, and form our company's first inside sales division. These talented people are in place, and we are rapidly improving our marketing programs, value proposition, and pipeline formulation to effectively capitalize on our core competencies and key differentiators."
"Over the next few quarters, we will be expanding our enterprise-wide revenue pipeline, participating in numerous high-profile events that facilitate one-to-one meetings with decision makers, and growing a robust partnership network," continued Davis. "These initiatives are bolstered by a revised incentive structure for our sales team, better alignment between business units, and a clear focus on the SMB and mid-market segments. We expect these changes will drive consistent pipeline growth and enhance our sales performance over the course of the year. We've accomplished an end-to-end transformation of our sales and marketing strategy and structure, and the team is now in place to drive organic growth."
"Simultaneously, we are taking steps, in collaboration with the Kearney Organization, to optimize our cost structure to enable us to invest in sales and marketing without depleting our cash reserves," continued Davis. "We have identified costs we can eliminate totaling approximately
"I believe the opportunity for Harte Hanks is significant," concluded Davis. "Our solutions meet the current and expected needs of customers, and we drive tangible value for clients and their customers. We can deliver organic growth, expanding the number of logos we work with and deepening our relationship with these customers over time. We are confident that we can streamline our organization to expand profitability and cash generation as we grow. The benefits of Project Elevate are expected to become evident in the second half of 2024 and into 2025."
Fourth Quarter Highlights
- The Company ended the year with a cash balance of
$18.4 million compared to$10.4 million at December 31, 2022, and$13.3 million at September 30, 2023, with zero debt. - Extended the current
$25 million line of credit until June 30, 2025. - Executing, as planned, the termination of Pension Plan 1.
- Total revenues for Q4 2023 were
$49.5 million , down9.7% compared to$54.8 million in Q4 2022; included in 2023 was$2.5 million of revenue from InsideOut compared to$1.0 million in the fourth quarter of 2022. - Operating loss was
$2.3 million compared to operating income of$3.4 million in the prior-year quarter. - Harte Hanks recorded
$5.7 million in non-recurring restructuring charges, related primarily to consulting expenses tied to the development and execution of Project Elevate and other cost-reduction initiatives, as well as severance and lease impairment charges. There were no restructuring charges in the fourth quarter of last year. - Net loss, inclusive of the
$5.7 million in restructuring charges, was$2.0 million , or$0.27 per basic and diluted share, compared to net income of$21.8 million , or$2.81 per basic and$2.70 per diluted share, in the prior year quarter. The fourth quarter of 2022 included a$19.8 million tax benefit. - The fourth quarter of 2023 had negative EBITDA of
$1.1 million compared to positive EBITDA of$4.4 million in the same period in the prior year. Adjusted EBITDA, which excludes stock-based compensation, severance and restructuring charges, was$5.2 million in both Q4 2023 and 2022.
Segment Highlights
- Customer Care,
$17.7 million in revenue,36% of total - Segment revenue increased$1.0 million or6.0% versus the prior year and EBITDA totaled$3.7 million for the quarter, up14.6% year-over-year. InsideOut contributed an increase of$1.4 million to revenue in the fouth quarter compared to same quarter in 2022. The increase in revenue from the sales services group offset the$0.4 million decrease in our traditional CX business. - Fulfillment & Logistics Services,
$21.3 million in revenue,43% of total - Segment revenue decreased$3.2 million or12.9% versus the prior year quarter and EBITDA totaled$1.9 million , down17.2% . Revenue mix and a12.2% decrease in operating expenses drove the improved EBITDA margins. The margin percentage continues to be impacted by variation in the revenue mix between lower margin logistics and the higher margin fulfillment services. - Marketing Services,
$10.5 million in revenue,21% of total - Segment revenue decreased$3.1 million or23.1% compared to the prior year quarter and EBITDA for the fourth quarter totaled$1.4 million vs.$2.1 million . The decrease in revenue was attributable to reduced project work in the financial services sector.
Consolidated Fourth Quarter 2023 Results
Fourth quarter revenues were
Fourth quarter operating loss was
Net loss for the quarter was
Consolidated Full Year 2023 Results
Full-year revenues were
Balance Sheet and Liquidity
Harte Hanks ended the year with
Conference Call Information
The Company will host a conference call and live webcast to discuss these results at 4:30 p.m. EST today, March 14, 2024. Interested parties may access the webcast at https://www.webcaster4.com/Webcast/Page/2810/49883 or may access the conference call by dialing 888-506-0062 in the United States or 973-528-0011 from outside the U.S. and using access code 692780.
A replay of the call can also be accessed via phone through March 28, 2024 by dialing (877) 481-4010 from the U.S., or (919) 882-2331 from outside the U.S. The conference call replay passcode is 49883.
About Harte Hanks:
Harte Hanks (NASDAQ: HHS ) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers.
Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world's premier brands, including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,500 employees in offices across the Americas, Europe, and Asia Pacific.
For more information, visit hartehanks.com
As used herein, "Harte Hanks" or "the Company" refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require. Harte Hanks' logo and name are trademarks of Harte Hanks, Inc.
Cautionary Note Regarding Forward-Looking Statements:
Our press release and related earnings conference call contain "forward-looking statements" within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements other than historical facts are forward-looking and may be identified by words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "seeks," "could," "intends," or words of similar meaning. These forward-looking statements are based on current information, expectations and estimates and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. These risks, uncertainties, assumptions and other factors include: (a) local, national and international economic and business conditions, including (i) market conditions that may adversely impact marketing expenditures, and (ii) the impact of economic environments and competitive pressures on the financial condition, marketing expenditures and activities of our clients and prospects; (iii) the demand for our products and services by clients and prospective clients, including (iv) the willingness of existing clients to maintain or increase their spending on products and services that are or remain profitable for us, and (vi) our ability to predict changes in client needs and preferences; (b) economic and other business factors that impact the industry verticals we serve, including competition, inflation and consolidation of current and prospective clients, vendors and partners in these verticals; (c) our ability to manage and timely adjust our facilities, capacity, workforce and cost structure to effectively serve our clients; (d) our ability to improve our processes and to provide new products and services in a timely and cost-effective manner though development, license, partnership or acquisition; (e) our ability to protect our facilities against security breaches and other interruptions and to protect sensitive personal information of our clients and their customers; (f) our ability to respond to increasing concern, regulation and legal action over consumer privacy issues, including changing requirements for collection, processing and use of information; (g) the impact of privacy and other regulations, including restrictions on unsolicited marketing communications and other consumer protection laws; (h) fluctuations in fuel prices, paper prices, postal rates and postal delivery schedules; (i) the number of shares, if any, that we may repurchase in connection with our repurchase program; (j) unanticipated developments regarding litigation or other contingent liabilities; (k) our ability to complete reorganizations, including cost-saving initiatives; and (l) other factors discussed from time to time in our filings with the Securities and Exchange Commission, including under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 which was filed on March 31, 2023. The forward-looking statements in this press release and our related earnings conference call are made only as of the date hereof, and we undertake no obligation to update publicly any forward-looking statement, even if new information becomes available or other events occur in the future.
Supplemental Non-GAAP Financial Measures:
The Company reports its financial results in accordance with generally accepted accounting principles ("GAAP"). However, the Company may use certain non-GAAP measures of financial performance in order to provide investors with a better understanding of operating results and underlying trends to assess the Company's performance and liquidity in this press release and our related earnings conference call. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure.
The Company presents the non-GAAP financial measure "Adjusted Operating Income" as a useful measure to both management and investors in their analysis of the Company's financial results because it facilitates a period-to-period comparison of Operating Income excluding stock-based compensation and severance. The most directly comparable measure for this non-GAAP financial measure is Operating Income.
The Company presents the non-GAAP financial measure "EBITDA" as a supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. The Company defines "EBITDA" as Net Income adjusted to exclude income tax expense, other expense (income), net, and depreciation and amortization expense. The Company defines "Adjusted EBITDA" as EBITDA adjusted to exclude stock-based compensation and severance. The most directly comparable measure for EBITDA and Adjusted EBITDA is Net Income. We believe EBITDA and Adjusted EBITDA are an important performance metric because it facilitates the analysis of our results, exclusive of certain non-cash items, including items which do not directly correlate to our business operations; however, we urge investors to review the reconciliation of non-GAAP EBITDA to the comparable GAAP Net Income, which is included in this press release, and not to rely on any single financial measure to evaluate the Company's financial performance.
The use of non-GAAP measures do not serve as a substitute and should not be construed as a substitute for GAAP performance but should provide supplemental information concerning our performance that our investors and we find useful. The Company evaluates its operating performance based on several measures, including these non-GAAP financial measures. The Company believes that the presentation of these non-GAAP financial measures in this press release and earnings conference call presentations are useful supplemental financial measures of operating performance for investors because they facilitate investors' ability to evaluate the operational strength of the Company's business. However, there are limitations to the use of these non-GAAP measures, including that they may not be calculated the same by other companies in our industry limiting their use as a tool to compare results. Any supplemental non-GAAP financial measures referred to herein are not calculated in accordance with GAAP and they should not be considered in isolation or as substitutes for the most comparable GAAP financial measures.
Investor Relations Contact:
Rob Fink or Tom Baumann
646.809.4048 / 646.349.6641
FNK IR
HHS@fnkir.com
Harte Hanks, Inc.
Consolidated Statements of Operations (Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
In thousands, except per share amounts | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Operating revenue | $ | 49,491 | $ | 54,778 | $ | 191,492 | $ | 206,278 | ||||||||
Operating expenses | ||||||||||||||||
Labor | 23,884 | 26,205 | 97,968 | 104,620 | ||||||||||||
Production and distribution | 16,410 | 19,530 | 59,568 | 61,930 | ||||||||||||
Advertising, selling, general and administrative | 4,602 | 4,650 | 20,673 | 21,893 | ||||||||||||
Restructuring expense | 5,687 | - | 5,687 | - | ||||||||||||
Depreciation and amortization expense | 1,186 | 964 | 4,237 | 2,728 | ||||||||||||
Total operating expenses | 51,769 | 51,349 | 188,133 | 191,171 | ||||||||||||
Operating income | (2,278 | ) | 3,429 | 3,359 | 15,107 | |||||||||||
Other expense (income), net | ||||||||||||||||
Interest (income) expense, net | 15 | 125 | (135 | ) | 438 | |||||||||||
Other expense (income), net | 1,653 | 1,307 | 5,413 | (4,644 | ) | |||||||||||
Total other expense (income), net | 1,668 | 1,432 | 5,278 | (4,206 | ) | |||||||||||
(Loss) income before income taxes | (3,946 | ) | 1,997 | (1,919 | ) | 19,313 | ||||||||||
Income tax benefit | (1,969 | ) | (19,807 | ) | (349 | ) | (17,463 | ) | ||||||||
Net (loss) income | (1,977 | ) | 21,804 | (1,570 | ) | 36,776 | ||||||||||
Less: Loss from redemption of Preferred stock | - | 1,380 | - | 1,380 | ||||||||||||
(Loss) income attributable to common stockholders | $ | (1,977 | ) | $ | 20,424 | $ | (1,570 | ) | $ | 35,396 | ||||||
(Loss) earnings per common share | ||||||||||||||||
Basic | $ | (0.27 | ) | $ | 2.81 | $ | (0.21 | ) | $ | 4.98 | ||||||
Diluted | $ | (0.27 | ) | $ | 2.70 | $ | (0.21 | ) | $ | 4.75 | ||||||
Weighted-average common shares outstanding | ||||||||||||||||
Basic | 7,221 | 7,267 | 7,310 | 7,101 | ||||||||||||
Diluted | 7,303 | 7,566 | 7,456 | 7,457 | ||||||||||||
Comprehensive income, net of tax | ||||||||||||||||
Net (loss) income | $ | (1,977 | ) | $ | 21,804 | $ | (1,570 | ) | $ | 36,776 | ||||||
Adjustment to pension liability | 243 | 7,967 | 1,664 | 10,274 | ||||||||||||
Foreign currency translation adjustments | 903 | 870 | 2,548 | (5,248 | ) | |||||||||||
Total other comprehensive income, net of tax | 1,146 | 8,837 | 4,212 | 5,026 | ||||||||||||
Comprehensive (loss) income | $ | (831 | ) | $ | 30,641 | $ | 2,642 | $ | 41,802 | |||||||
Harte Hanks, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
In thousands, except per share data | December 31, 2023 | December 31, 2022 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 18,364 | $ | 10,364 | ||||
Accounts receivable (less allowance of | 34,313 | 39,700 | ||||||
Unbilled accounts receivable | 7,677 | 7,893 | ||||||
Contract assets | 258 | 309 | ||||||
Prepaid expenses | 1,915 | 2,176 | ||||||
Prepaid income tax and income tax receivable | 1,758 | 4,262 | ||||||
Other current assets | 928 | 1,607 | ||||||
Total current assets | 65,213 | 66,311 | ||||||
Net property, plant and equipment | 8,855 | 10,523 | ||||||
Right-of-use assets | 25,417 | 19,169 | ||||||
Other assets | 23,272 | 23,981 | ||||||
Total assets | $ | 122,757 | $ | 119,984 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 23,176 | $ | 22,465 | ||||
Accrued payroll and related expenses | 5,615 | 6,679 | ||||||
Deferred revenue and customer advances | 3,195 | 4,590 | ||||||
Customer postage and program deposits | 1,815 | 1,223 | ||||||
Other current liabilities | 9,495 | 2,862 | ||||||
Short-term lease liabilities | 4,815 | 5,747 | ||||||
Total current liabilities | 48,111 | 43,566 | ||||||
Pensions liabilities - Qualified plans | 10,540 | 18,674 | ||||||
Pension liabilities - Nonqualified plan | 18,630 | 19,098 | ||||||
Long-term lease liabilities, net of current portion | 23,691 | 16,575 | ||||||
Other long-term liabilities | 1,928 | 3,263 | ||||||
Total liabilities | 102,900 | 101,176 | ||||||
Stockholders' equity | ||||||||
Common stock | 12,221 | 12,221 | ||||||
Additional paid-in capital | 157,889 | 218,411 | ||||||
Retained earnings | 844,920 | 846,490 | ||||||
Less treasury stock | (951,083 | ) | (1,010,012 | ) | ||||
Accumulated other comprehensive loss | (44,090 | ) | (48,302 | ) | ||||
Total stockholders' equity | 19,857 | 18,808 | ||||||
Total liabilities and stockholders' equity | $ | 122,757 | $ | 119,984 | ||||
Harte Hanks, Inc.
Reconciliations of Non-GAAP Financial Measures (Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
In thousands, except per share data | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net (loss) income | $ | (1,977 | ) | $ | 21,804 | (1,570 | ) | $ | 36,776 | |||||||
Income tax benefit | (1,969 | ) | (19,807 | ) | (349 | ) | (17,463 | ) | ||||||||
Other expense (income), net | 1,668 | 1,432 | 5,278 | (4,206 | ) | |||||||||||
Depreciation and amortization expense | 1,186 | 964 | 4,237 | 2,728 | ||||||||||||
EBITDA | $ | (1,092 | ) | $ | 4,393 | $ | 7,596 | $ | 17,835 | |||||||
Stock-based compensation | 215 | 579 | 1,418 | 2,355 | ||||||||||||
Severance | 398 | 183 | 1,774 | 384 | ||||||||||||
Restructuring expense | 5,687 | - | 5,687 | - | ||||||||||||
Adjusted EBITDA | $ | 5,209 | $ | 5,155 | $ | 16,476 | $ | 20,574 | ||||||||
Operating (loss) income | $ | (2,278 | ) | $ | 3,429 | $ | 3,359 | $ | 15,107 | |||||||
Stock-based compensation | 215 | 579 | 1,418 | 2,355 | ||||||||||||
Severance | 398 | 183 | 1,774 | 384 | ||||||||||||
Restructuring expense | 5,687 | - | 5,687 | - | ||||||||||||
Adjusted operating income | $ | 4,023 | $ | 4,191 | $ | 12,239 | $ | 17,846 | ||||||||
Adjusted operating margin (a) | 8.1 | % | 7.7 | % | 6.4 | % | 8.7 | % | ||||||||
| (a) | Adjusted Operating Margin equals Adjusted Operating Income divided by Revenues. |
Harte Hanks, Inc.
Statement of Operations by Segments (Unaudited)
In thousands
Year ended December 31, 2023 | Marketing Services | Customer Care | Fulfillment & Logistics | Restructuring Expense | Unallocated Corporate | Total | ||||||||||||||||||
Revenues | $ | 43,204 | $ | 63,327 | $ | 84,961 | $ | - | $ | - | $ | 191,492 | ||||||||||||
Segment operating expense | 34,795 | 49,851 | 73,213 | - | 20,350 | 178,209 | ||||||||||||||||||
Restructuring expense | - | - | - | 5,687 | - | 5,687 | ||||||||||||||||||
Contribution margin | $ | 8,409 | $ | 13,476 | $ | 11,748 | $ | (5,687 | ) | $ | (20,350 | ) | $ | 7,596 | ||||||||||
Overhead Allocation | $ | 2,984 | $ | 2,774 | $ | 2,891 | $ | - | $ | (8,649 | ) | - | ||||||||||||
EBITDA | $ | 5,425 | $ | 10,702 | $ | 8,857 | $ | (5,687 | ) | $ | (11,701 | ) | $ | 7,596 | ||||||||||
Depreciation and amortization expense | 312 | 1,280 | 1,143 | - | 1,502 | 4,237 | ||||||||||||||||||
Operating income (loss) | $ | 5,113 | $ | 9,422 | $ | 7,714 | $ | (5,687 | ) | $ | (13,203 | ) | $ | 3,359 | ||||||||||
Year ended December 31, 2022 | Marketing Services | Customer Care | Fulfillment & Logistics | Restructuring Expense | Unallocated Corporate | Total | ||||||||||||||||||
Revenues | $ | 52,975 | $ | 67,205 | $ | 86,098 | $ | - | $ | - | $ | 206,278 | ||||||||||||
Segment operating expense | 41,241 | 52,173 | 72,180 | - | 22,849 | 188,443 | ||||||||||||||||||
Contribution margin | $ | 11,734 | $ | 15,032 | $ | 13,918 | $ | - | $ | (22,849 | ) | $ | 17,835 | |||||||||||
Overhead allocation | 4,390 | 2,865 | 3,325 | - | (10,580 | ) | - | |||||||||||||||||
EBITDA | $ | 7,344 | $ | 12,167 | $ | 10,593 | $ | - | $ | (12,269 | ) | $ | 17,835 | |||||||||||
Depreciation and amortization expense | 362 | 884 | 824 | - | 658 | 2,728 | ||||||||||||||||||
Operating income (loss) | $ | 6,982 | $ | 11,283 | $ | 9,769 | $ | - | $ | (12,927 | ) | $ | 15,107 | |||||||||||
Harte Hanks, Inc.
Statement of Operations by
Segments (Unaudited)
In thousands
Three months ended December 31, 2023 | Marketing Services | Customer Care | Fulfillment & Logistics | Restructuring Expense | Unallocated Corporate | Total | ||||||||||||||||||
Revenues | $ | 10,453 | $ | 17,702 | $ | 21,336 | $ | - | $ | - | $ | 49,491 | ||||||||||||
Segment operating expense | 8,331 | 13,317 | 18,778 | - | 4,470 | 44,896 | ||||||||||||||||||
Restructuring expense | - | - | - | 5,687 | - | 5,687 | ||||||||||||||||||
Contribution margin | $ | 2,122 | $ | 4,385 | $ | 2,558 | $ | (5,687 | ) | $ | (4,470 | ) | $ | (1,092 | ) | |||||||||
Overhead Allocation | 723 | 672 | 688 | - | (2,083 | ) | - | |||||||||||||||||
EBITDA | $ | 1,399 | $ | 3,713 | $ | 1,870 | $ | (5,687 | ) | $ | (2,387 | ) | $ | (1,092 | ) | |||||||||
Depreciation and amortization expense | 145 | 256 | 407 | - | 378 | 1,186 | ||||||||||||||||||
Operating income (loss) | $ | 1,254 | $ | 3,457 | $ | 1,463 | $ | (5,687 | ) | $ | (2,765 | ) | $ | (2,278 | ) | |||||||||
Three months ended December 31, 2022 | Marketing Services | Customer Care | Fulfillment & Logistics | Restructuring Expense | Unallocated Corporate | Total | ||||||||||||||||||
Revenues | $ | 13,586 | $ | 16,706 | $ | 24,486 | $ | - | $ | - | $ | 54,778 | ||||||||||||
Segment operating expense | 10,338 | 12,739 | 21,385 | - | 5,922 | 50,384 | ||||||||||||||||||
Restructuring expense | - | - | - | - | - | - | ||||||||||||||||||
Contribution margin | $ | 3,248 | $ | 3,967 | $ | 3,101 | $ | - | $ | (5,922 | ) | $ | 4,394 | |||||||||||
Overhead Allocation | 1,100 | 726 | 842 | - | (2,668 | ) | - | |||||||||||||||||
EBITDA | $ | 2,148 | $ | 3,241 | $ | 2,259 | $ | - | $ | (3,254 | ) | $ | 4,394 | |||||||||||
Depreciation and amortization expense | 74 | 275 | 243 | - | 372 | 964 | ||||||||||||||||||
Operating income (loss) | $ | 2,074 | $ | 2,966 | $ | 2,016 | $ | - | $ | (3,626 | ) | $ | 3,430 | |||||||||||
View the original press release on accesswire.com
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